135 Posts Found

Booz Allen Hamilton research reveals that a third of those who outsource fail to achieve the expected benefits. Is that outcome inevitable? Absolutely not, if companies pay close attention to outsourcing governance.

Content: Article | Source: Strategy& | Subject: Outsourcing / BPO

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Currently, in some industries, the difference in the cost of labor is such that they have no choice but to outsource to, say, China. But in other industries, the choice is not always so clear. My feeling is that in many cases not all costs in terms of increased risks are taken into account. One of the problems is that we don’t have good metrics … [ Read more ]

Content: Quotation | Source: strategy+business | Subjects: Outsourcing / BPO, Risk Management

Successful companies ask themselves, “What must I keep at home?” rather than “What can I send to LCCs?” The burden of proof shifts from the LCC advocate (often procurement) to the existing producer (manufacturing), which now needs to prove – and improve – its own competitiveness. Best-practice companies investigate and communicate the LCC options and costs, specify the target costs that will be considered competitive, … [ Read more ]

Content: Quotation | Source: Boston Consulting Group (BCG) | Subject: Outsourcing / BPO

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International logistics partnerships are a key class of strategic alliance, but until now little has been known about their performance. The paper “Measuring the Performance of Intenational Logistics Outsourcing Partnerships: A Dyadic Perspective Analysis” introduces, for the first time, a reliable methodology to measure the performance of a partnership between a logistics provider and its customer. Using data from 75 top European logistics companies and … [ Read more ]

Content: Article | Authors: África Ariño, Alejandro Lago, Joan Jané | Source: IESE Insight | Subjects: Operations, Outsourcing / BPO

A recent Accenture global survey of more than 500 companies, combined with 32 in-depth interviews with experienced outsourcing executives, demonstrates a new maturity in the way businesses and governments are working the outsourcing lifecycle, and reveals hard-won expertise in getting the most from outsourcing partnerships. These executives embrace outsourcing as a mainstream management tool for improving performance and increasing productivity. Far from a one-shot quick … [ Read more ]

Content: Article | Authors: Adam Johnson, Philip A. George | Source: Outlook Journal (Accenture) | Subjects: Management, Outsourcing / BPO

Companies that send their back-office jobs offshore often cut their labor costs by as much as half. But new research by the McKinsey Global Institute finds that these companies risk leaving billions of dollars in savings behind if they merely replicate what they do at home in countries where labor is cheap. The savviest operators redesign business processes to exploit automation and take full advantage … [ Read more ]

Content: Article | Authors: Diana Farrell, Jaana K. Remes, Vivek Agrawal | Source: McKinsey Quarterly | Subject: Outsourcing / BPO

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As more companies move to outsource services currently performed in-house, they’ll likely encounter a slew of risks, some of which become clear only when something goes badly wrong. Managers will have to mitigate these risks in order to reap the substantial benefits that outsourcing provides.

Content: Article | Authors: Andrew Chadwick-Jones, David Bovet, Olivier Fainsilber | Source: Mercer Management Journal | Subjects: Management, Outsourcing / BPO

Many companies today outsource the wrong processes to the wrong vendors in deals with the wrong structure. The resulting chaos and rancor that has come to typify much of the IT-outsourcing market is a clear indication of the need for a simplifying but rigorous framework that provides practical guidance.

Making the right outsourcing decisions requires answering three questions:

* What to outsource
… [ Read more ]

Content: Article | Author: Michael E. Raynor | Source: Deloitte | Subjects: IT / Technology / E-Business, Outsourcing / BPO

In a quest for cost savings and improved efficiency, many companies outsource portions of their IT. Few companies, however, ultimately capture the value they expected. This article provides eight levers to help remedy the situation.

Content: Article | Authors: Anthony Datel, Peter Balnaves, Ralf Dreischmeier | Source: Boston Consulting Group (BCG) | Subjects: IT / Technology / E-Business, Outsourcing / BPO

Having exploited most of the first-generation cost savings available through outsourcing, leading companies are now focusing on business model transformation. They are looking beyond IT and general and administrative (G&A) services and outsourcing processes closer to the core, including line operations, often using offshore resources. Moreover, many are exploring ways to commercialize their own world-class internal services through spin-offs and joint ventures.

Content: Article | Authors: Chris Disher, Eduardo Alvarez, Vinay Couto | Source: Strategy& | Subject: Outsourcing / BPO

CEOs and CFOs must ensure that internal controls in outsourced activities are documented and tested each year.

Content: Article | Author: Bryan Mekechuk | Source: Optimize Magazine | Subjects: Management, Outsourcing / BPO

Dominating a market is a function of being able to deliver more performance than your competitors on the basis of competition. And doing that depends upon being able to closely integrate those elements in the value chain that drive performance along the relevant dimensions. Whatever does not drive that performance can be safely outsourced.

It is not enough to get this analysis right just once, however, … [ Read more ]

Content: Quotation | Source: Deloitte | Subject: Outsourcing / BPO

In the outsourcing realm, core competence thinking typically manifests itself as a prescription for firms to outsource IT-intensive processes because the IT elements that drive process capabilities rarely qualify as a firm’s core competence. But outsourcing vendors make running IT infrastructures the focus of their business. For them, these activities are their core competence. This reasoning is encapsulated in marketing slogans such as “make your … [ Read more ]

Content: Quotation | Source: Deloitte | Subjects: Competition, Outsourcing / BPO

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A five-dimension analytical model for deciding when (and when not) to purchase from the East.

Content: Article | Authors: Dermot Shorten, Mitchell Quint | Source: strategy+business | Subjects: International – China, Outsourcing / BPO

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